Shares of Xpeng, a Chinese electric vehicle maker, dropped more than 9% in Hong Kong on Tuesday following the company's release of a weaker-than-expected third-quarter delivery forecast, despite its robotics business unit achieving a post-transaction valuation exceeding $6.3 billion in a recent funding round [1]. Xpeng's U.S.-listed shares also closed 8.5% lower on Monday, reflecting investor disappointment [1].
For the second quarter, Xpeng reported a net loss of 1.34 billion yuan ($0.20 billion), which was wider than the loss recorded a year earlier. However, revenue increased by 8% to 19.74 billion yuan [1]. The company projected third-quarter vehicle deliveries between 115,000 and 121,000 units, a figure that Citi noted fell short of investor expectations due to supply chain constraints affecting the ramp-up of Xpeng's MONA L03 model [1]. As a result, Citi slightly lowered its price targets for Xpeng's U.S.- and Hong Kong-listed shares [1].
In a separate development, Xpeng's robotics business raised more than $900 million in its first funding round, led by IDG Capital with participation from Gaorong Ventures and strategic support from Tencent and Alibaba. This funding gave the robotics unit a valuation of over $6.3 billion [1]. Brian Gu, Xpeng's vice chairman and co-president, stated that the company aims to initiate "a new phase of global mass production and commercial deployment for advanced humanoid robots" [1].
Citi estimates that if Xpeng's current valuation fully reflects the robotics unit's post-transaction valuation, the EV business has an implied value of around $6.5 billion, roughly equal to the robotics business. Citi described the robotics financing as a long-term positive, suggesting Xpeng could leverage its expertise in algorithms, AI models, and chips for humanoid robots [1]. CEO He Xiaopeng previously stated that Xpeng expects to sell more robots than cars in the next decade, and the company has already unveiled its second-generation humanoid robot and established a flying vehicles business unit [1].
Despite recovering market share last year with its lower-priced Mona brand, Xpeng has struggled to sustain sales momentum amid a broader slump in China's electric car market [1].
CONCLUSION
Xpeng's disappointing delivery guidance and widening losses triggered a sharp sell-off in its shares, overshadowing the positive news of its robotics unit's substantial valuation. While the robotics business presents long-term growth potential, immediate investor sentiment remains negative due to supply chain challenges and weak EV sales outlook. The market is likely to remain cautious until Xpeng demonstrates improved operational performance and delivery growth.